- Fern Trading, an Octopus Group subsidiary, is exploring the launch of an MVNO named Y Corporation.
- The venture plans to utilise existing network infrastructure, likely Three’s, to provide mobile services.
What happened: Octopus-backed Fern plans MVNO launch in UK mobile market
Fern Trading, a subsidiary of Octopus Group, is reportedly preparing to enter the UK mobile market by launching a new mobile virtual network operator (MVNO) under the name Y Corporation. The planned MVNO aims to offer SIM-only contracts to both consumers and businesses, leveraging existing network infrastructure rather than building its own.
The venture is expected to utilise Three’s network infrastructure, capitalising on existing wholesale arrangements. Under the terms of the Vodafone-Three merger, MVNOs with agreements to use Three’s network are entitled to have those deals rolled over into the merged entity, ensuring continuity of service.
In January, Fern appointed Adam Dunlop, former TalkTalk executive, to lead the initiative. Despite being backed by Octopus Group, the new service will not carry the Octopus brand name.
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Why it’s important
The planned launch of Y Corporation reflects a broader trend in the UK mobile market, where MVNOs are gaining traction by offering flexible, cost-effective alternatives to traditional mobile network operators. In 2024, MVNOs added 1.6 million subscribers, while traditional operators lost contract subscribers, highlighting a shift in consumer preferences.
By entering the MVNO space, Fern Trading aims to capitalise on this trend, offering competitive mobile services without the overhead of maintaining its own network infrastructure. This move could further disrupt the UK mobile market, providing consumers with more choices and potentially driving down prices.
